Agents and Brokers

question 45

Multiple Choice

Agents and brokers:

• A) have a great deal of control and risk invested in the goods
• B) only represent manufacturers in sales situations
• C) have a great deal of input on the terms of the sale
• D) generally are on salary with the manufacturer
• E) do not take title to merchandise

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, working capital used in a business by a person, company, or organization.

Income Summary

An account used to summarize the revenue and expenses for a specific period, aiding in the transition to the next accounting period.

Net Loss

The amount by which total expenses exceed total revenues in a given period, indicating a financial loss.

Net Income

A company's total earnings post the subtraction of all expenses, taxes, and costs from its overall revenue.